The Beginner's Guide on how to Flip NFTs for Profit
The NFT space is booming with users flipping NFTs for thousands. In this guide, we explain how to flip NFTs from the comfort of home and make a profit.
Flipping has existed forever— from the days of flipping trading cards, toys, and comics for profit, and we’re now seeing an enormous wave in the NFT space. Flippering NFTs is a process of purchasing a unique token and reselling it through a secondary marketplace.
The average monthly trading volumes of NFTs jumped from $64 million in the first half of 2021 to more than $750 million in the second half. Note, that now the NFT space is a $41 billion industry with thousands being traded on a daily basis.
Besides holding Bitcoin and Alts or creating and collecting tokenized art for the long term, you might want to get in on high-volume NFT projects for quicker returns. Although risky, flipping NFTs is a relatively fast way to boost your portfolio. In October 2017, NFT CryptoPunk #8348 was sold for $456. Currently, the very same NFT is valued at $171 million.
NFT stands for a non-fungible token, it’s a unique digital asset that belongs only to you. Now the most popular NFTs are in the form of artwork and music, but can also include videos and even tweets. NFTs can be stand-alone, or they can be part of a collection, which can also allow their owners to feel as though they are joining an exclusive online community.
Quick Steps for Flipping an NFT
Here is our quick tutorial on how to flip NFTs for profit.
1. Choose NFT to Flip: You can buy NFTs from both primary and secondary marketplaces. First of all, identify an NFT that you believe is undervalued and thus – ideal for flipping. We recommend the Lucky Block Platinum Rollers Club NFT Collection.
2. Visit NFT Marketplace: After identifying the best NFT to flip, you will need to visit the marketplace where the token is listed. For example, Lucky Block – which we found to be the overall best NFT to flip right now – is listed on the NFT Launchpad website.
3. Connect Wallet: Then you will need to connect your wallet to the respective marketplace to pay for your NFT purchase. At NFT Launchpad, the platform supports wBNB tokens via MetaMask, which is the best wallet to buy and store NFTs.
4. Buy NFT: As you confirm the purchase of your chosen NFT the wBNB tokens will be deducted from your MetaMask wallet. In turn, you will now own the respective NFT.
5. Flip NFT: After buying the NFT you can flip it for a profit. Set your own listing price on the NFT Launchpad. Once you have relisted the NFT, it’s then just a case of waiting for somebody to buy it at your chosen price. When this happens, you will have successfully flipped an NFT for a profit.
How to Spot Hot NFT Projects
As we know, making profits requires analyzing metrics to make the best possible decision. Thus people always go for assets that are currently undervalued or they expect to increase in value.
There are NFT platforms that guide users into potentially hot assets. For example, the “Top Artists” and “Exclusive Drops” sections on AirNFTs are good places to look at when considering buying. The Rankings and Activity pages on OpenSea also provide some insight into potentially great projects.
You probably already know that artists and known NFT influencers often announce new projects on their social media pages-Twitter, Reddit, Telegram, Discord, and Instagram. Also, NFT platforms have social media accounts where they often promote their users’ projects.
As to NFTs, one needs to do quality research to find their niche. Common niches include animal-themed art, abstract paintings, collectibles, domain names, or even virtual pieces of land. Here are the three key metrics that primarily determine how well an NFT projet will do:
1. Number of Items
NFT projects with a limited quantity of items always drive demand up and are much likely to give you profit.
2. Floor Price
By saying floor price we mean the least price you can get an item. You want to look for items with low floor prices and minimal supply.
You should pitch your investments with platforms with high trading volumes as making profits in any market depends on liquidity. Chances are you will quickly see collectors willing to buy your items.
Is NFT Flipping Profitable?
NFT flipping can be extremely profitable when choosing the right NFT to buy for flipping purposes. After all, there are thousands of tokens trading across a variety of NFT marketplaces – so this industry is very quickly becoming oversaturated.
Let’s look at the case of the Bored Ape Yacht Club series to understand just how lucrative NFT flipping can be.
- For example, when the series was first minted in early 2021, you would have paid just 0.08 ETH.
- At that time, this amounted to just $200 per NFT.
- As noted earlier, Bored Ape Yacht Club NFTs have since sold for more than $1 million each – which includes sales from a vast range of celebrities.
- As such, this represents one of the best NFT flipping investments of all time.
With that said, there are plenty of NFTs that will struggle to sell – let alone make you a profit. Research the market extensively to give yourself the best chance possible of making a profit.
To sum up, take into note that flipping NFTs is risky but can get you a lot of money if you play your cards right. You must remember that NFTs are not as liquid as their fungible counterparts, meaning you can only make a profit as long as you see buyers willing to buy. Hence, you must take care to invest what you can afford to lose.
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